Course Title: Engineering Economics Course Code: CEng – 6132 Program: MSc in COTM Credit: Instructor: Fasika Bete (Dr.-Ing.) ECTS Credits 6 Contact Hours (per week) Lecture Tutorial & Seminars Home Study Total contact Hrs. 3 4 6
Course outline Chapter Topics 1 Introduction project Management & Engineering Economics 2 Introduction to Construction Accounting 3 Understanding Cash Flow Diagrams, Interest Rates and Time Value of Money 4 Evaluation of Business & Engineering Projects 5 Understanding the 3 Worths - Present, Future & Annual Equivalent-Worth Analysis 6 Rate-of-Return Analysis 7 Benefit-Cost Analysis and its Implication for Public Sector Projects 8 Depreciation, Taxation and Inflation 9 Retirements and replacement analysis 10 Risk and Uncertainty 11 Cost Concepts & Capital-Budgeting Decisions
EVALUATION Assignment 15% Mini quiz & Class Discussion 20% Project Report and Project Presentation 25% Final Exam 40% Project Report and Project Presentation • Practical Application: Find a project topic • Project report, team work !!! At least 3, up to 6 students a group Quizzes (all in class) Based on examples and problems in the book 20 minutes long, about 4 problems
Chapter 1 Introduction Project Management & Engineering Economics
The Two End Points in a Project Inspiration Operation A miracle occurs
Construction of Great Pyramid of Cheops, Alexandria Light House, Ajnata Caves (India) Pyramids, Taj Mahal, Shalamar Garden, Mosques and Forts Great projects Ethiopia ,,,,,,,,,, But……… Projects in Stone Ages
Beginning of Modern project Management U S Navy's Polaris Program, NASA's Apollo, Space shuttle & SDI ("star wars") programs - specially developed management approaches to extraordinarily complex projects. “ A Project Is A Problem Scheduled For Solution .” J M Juran Problem -gap b/w where u R & where u want to be, with an obstacle that prevents easy movement to close the gap. INTRODUCTION
“A project is a temporary endeavour undertaken to create a unique product or service:” Definition A group of activities -to be undertaken with limited resources to yield specific objectives in a specific time in a specific locality.
A typology of projects
Life Is A project
Attributes of a Project • One Goal: have a single goal as compared to a program • Has a customer • Specified Time : C ompletion date • Within Budget: R esource limits (people, money, machines) • According to Specs: Customer expects a certain level of Functionality & Quality (S elf-imposed or Customer- specified, & Fixed) .
Operations & Projects Distinguish b/w projects & operations: Operations ongoing & repetitive projects - temporary & unique, performed by teams: -Clearly defined team & individual roles -Open & effective communications -Visible rewards for good performance, pressure to improve Poor performance projects may include activities such as: ◦ Developing a new product or service.